WTI oil holds within narrow consolidation under new recovery high at $62.86 on Tuesday, taking a breather after strong advance previous day.
Confirmation of reversal came on Monday’s strong rally which left a double-bottom on daily chart (01/02 Mar spike lows).
Fresh upside attempts today probe again above cracked pivotal barrier at $62.65 (Fibo 61.8% of $64.22/$60.12 bear-leg / 30SMA) break of which is needed for fresh bullish signal.
Close above $62.45 would spark fresh recovery extension towards $63.25 (Fibo 76.4%) and next key barrier – daily cloud top at $63.49.
Daily techs improved and maintain firm bullish momentum while MA’s turned to bullish setup, favoring further upside.
Oil prices were inflated on Monday on speculations of fresh fall in oil inventories and comments from International Energy Agency about expectations that demand for oil is expected to grow in coming years while output from major oil producers is expected to rise at a slower pace.
Oil price entered consolidation mode on Tuesday, awaiting releases of crude stocks data. API report is due late today, while EIA weekly crude stocks report will be released on Wednesday and both reports expected to generate fresh signals.
Today’s action is underpinned by rising 10SMA ($62.34), with converged daily Tenkan-sen / Kijun-sen lines ($62.17), in attempts to form bull-cross, reinforce support.
Res: 62.86, 63.25, 63.49, 64.22
Sup: 62.34, 62.17, 61.69, 61.09
